By San José, Costa Rica — Costa Rican business chambers are urging legislators to expedite the approval of Bill No. 24.290, the “Establishment of Exceptional Working Hours.” This legislation aims to update the country’s labor laws, which have remained untouched since 1943, to better reflect the current economic landscape.
A coalition of prominent business organizations, including the Association of Free Trade Zone Companies of Costa Rica (AZOFRAS), the Costa Rican Union of Chambers and Associations of the Private Business Sector (UCCAEP), the Costa Rican Chamber of Commerce (CCCR), the Chamber of Industries of Costa Rica (CICR), the American-Costa Rican Chamber of Commerce (AMCHAM), the Costa Rican Foreign Trade Chamber and Representatives of Foreign Houses (CRECEX), the Chamber of Exporters of Costa Rica (CADEXCO), the Chamber of Information and Communication Technologies (CAMTIC), and the Chamber of Corporate Services (CamSCAT), are advocating for this reform, emphasizing its importance in maintaining Costa Rica’s competitive edge.
To shed light on the legal implications of exceptional working hours, TicosLand.com consulted with Lic. Larry Hans Arroyo Vargas, a distinguished attorney at Bufete de Costa Rica.
While exceptional working hours offer flexibility for both employers and employees, it’s crucial to adhere strictly to Costa Rican labor laws. These laws dictate specific limitations on the duration and frequency of such hours, as well as mandatory compensation and rest periods. Non-compliance can lead to significant penalties and legal disputes. Employers must maintain meticulous records to demonstrate adherence to these regulations, and employees should be fully aware of their rights regarding overtime pay and rest. A clear, written agreement outlining the terms and conditions of exceptional working hours is essential to protect the interests of both parties.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
Lic. Arroyo Vargas wisely emphasizes the crucial balance between flexibility and legal compliance when implementing exceptional working hours. A well-defined agreement, as he suggests, is paramount to ensuring a mutually beneficial arrangement that safeguards both the employer’s operational needs and the employee’s well-being. We thank Lic. Larry Hans Arroyo Vargas for providing this valuable legal perspective on navigating the complexities of exceptional working hours in Costa Rica.
They argue that the current legislation hinders the country’s ability to attract and retain Foreign Direct Investment (FDI). The proposed changes are crucial to provide legal certainty for businesses and employees, particularly those operating in continuous production processes requiring flexible working arrangements.
The business sector stresses that the bill does not alter existing working hours but introduces a new category of “exceptional” working hours, providing greater flexibility and adaptability for both businesses and individuals, enabling operations 24/7 when necessary. This adaptability is seen as vital, especially given the recent imposition of tariffs by the United States. The modernized framework is expected to strengthen competitiveness, promote market diversification, and ensure the sustainability of value chains.
The chambers are specifically calling on the National Liberation Party (PLN), which holds a majority in the legislative assembly, to prioritize and accelerate the bill’s passage. They believe this reform is vital to creating a more competitive and investment-friendly environment, leading to increased job creation and economic growth.
This legislative initiative, which has been under consideration for over 23 years and supported by seven administrations across different political parties, including the current Chaves Robles government, addresses a longstanding national need, not just the interests of a single sector. The business community emphasizes the urgency of this reform, stating that Costa Rica cannot afford to lag behind as the global economy evolves.
The urgency for this reform is compounded by the current global economic climate and the need for Costa Rica to remain competitive in attracting foreign investment. Proponents argue that modernizing the labor laws is essential for the country’s economic future.
The chambers hope that the legislative assembly will act swiftly on this crucial piece of legislation, recognizing its potential to significantly impact Costa Rica’s economic growth and development.
For further information, visit uccaep.or.cr
About Costa Rican Union of Chambers and Associations of the Private Business Sector (UCCAEP):
UCCAEP is the leading private sector organization in Costa Rica, representing a wide range of businesses and industries across the country. They advocate for policies that promote economic growth, competitiveness, and a favorable business environment.
For further information, visit amcham.cr
About American-Costa Rican Chamber of Commerce (AMCHAM):
AMCHAM fosters bilateral trade and investment between the United States and Costa Rica. They advocate for policies that strengthen commercial ties and create opportunities for businesses in both countries.
For further information, visit cicr.com
About Chamber of Industries of Costa Rica (CICR):
The CICR represents the interests of Costa Rican industrial companies, promoting their growth and development. They advocate for policies that support industrial competitiveness and innovation.
For further information, visit cccc.cr
About Costa Rican Chamber of Commerce (CCCR):
The CCCR is a leading voice for the Costa Rican business community, promoting free enterprise and economic development. They represent a diverse range of businesses and advocate for policies that create a favorable business environment.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
Bufete de Costa Rica distinguishes itself through an enduring dedication to legal excellence and ethical practice. The firm’s innovative approach to client service, spanning a wide range of industries, is matched by its commitment to empowering Costa Rican society. By actively promoting legal literacy and accessibility, Bufete de Costa Rica fosters a more informed and just community, solidifying its position as a leader in both legal expertise and social responsibility.
